Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

OPEC will barely have to raise oil output in the next five years as U.S. shale oil is planned to meet most of the new worldwide demand, even if the global economy picks up the pace, the Wests energy agency said on Tuesday.

According to the International Energy Agency, which analyses global oil supply and demand trends, U.S. and Canadas output is high enough to meet an eventual heightened demand. According to the IEAs forecast oil demand should rise by 8% between 2012 and 2018 and reach 96.7 million bpd, based on an IMF global economic growth prediction of of 3-4,5% for the period.

“Following several years of stronger-than-expected North American supply growth, the shockwaves of rising U.S. shale gas and light tight oil and Canadian oil sands production are reaching virtually all recesses of the global oil market.” the IEA said.

Seeing OPEC as a last resort for the world to meet increased demand, the IEA forecasts a 10% rise in non-OPEC oil production, which should increase to 59,31 bpd between 2012 and 2018. The agency lowered its estimate for OPEC oil production by 1.22 million bpd to 29.99 million bpd up to 2017. Some of the OPEC members are experiencing difficulties due to the impaired investment and capacity growth as a result of the “Arab Spring”. Irans oil production is also estimated to fall by 2018 by around 1 million bpd due to Western sanctions against the countrys nuclear programme.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • SABMiller share price down, sales in China and Australia dropSABMiller share price down, sales in China and Australia drop SABMiller Plc reported a fall in sales in China and Australia, causing overall deliveries to jump by 5% in the first fiscal half ended September 30th, trailing forecasts for 5.5%.The producer of Miller Lite, Grolsch and Peroni said that […]
  • EUR/USD advanced, Bernanke testimony eyedEUR/USD advanced, Bernanke testimony eyed The euro pushed higher versus the US dollar on Tuesday, as market players began focusing on the testimony to Congress by Ben Bernanke on Wednesday.EUR/USD reached a session high at 1.3094 at 6:03 GMT, after which consolidation followed at […]
  • Forex Market: NZD/USD daily trading forecastForex Market: NZD/USD daily trading forecast Yesterday’s trade saw NZD/USD within the range of 0.6320-0.6407. The pair closed at 0.6329, losing 0.70% on a daily basis. It has been the first drop in the past three trading days and also the steepest one since September 21st, when the pair […]
  • Forex Market: USD/JPY pauses rally driven by Fed rate hike betsForex Market: USD/JPY pauses rally driven by Fed rate hike bets After a 1% surge on Monday triggered by the latest US employment data, which added to the case for a Fed rate hike in May, USD/JPY eased on Tuesday with US 10-year Treasury yields.Futures markets are now pricing in a 71% chance of the […]
  • Forex Market: USD/MXN daily trading forecastForex Market: USD/MXN daily trading forecast Yesterday’s trade saw USD/MXN within the range of 13.3520-13.4700. The pair closed at 13.3820, losing 0.54% on a daily basis.At 7:51 GMT today USD/MXN was up 0.01% for the day to trade at 13.3829. The pair touched a daily high at 13.3890 […]
  • Gold leads precious metals’ gains as U.S. debt deadlock nears deadlineGold leads precious metals’ gains as U.S. debt deadlock nears deadline Gold rose for a third day on Wednesday as the deadline loomed for U.S. lawmakers to reach an agreement on reopening the partially shut federal government and extending the countrys borrowing authority. Broad expectations however that a deal […]